The parliament of the European Union has passed legislation [Market in Crypto-assets Law, MiCA] aimed at addressing the longstanding struggle with the cryptocurrency market.
The cryptocurrency industry has long been unregulated and has caused concern for several regulators.
Several EU, UK, and US regulators have since further restricted crypto exchanges and services to mitigate this threat.
The MiCA regulation is expected to be welcomed by many, particularly investors, as the law would ensure cryptocurrency exchanges are held accountable for losses accumulated on their platforms.
Bigwig Changpeng Zhao, a well-known cryptocurrency exchange under the popular exchange Binance, took to Twitter to confirm the new cryptocurrency regulations.
According to CZ, as affectionately known, this new EU bloc law creates tailored rules that would protect investors better than mere witch-hunt intermediaries in the blooming industry.
“The small specifics will make all the difference, but we trust this is a pragmatic solution to our challenges. There are now clear policies of the game for cryptocurrency exchanges in the EU,” he added.
The industry leader has expressed willingness to make several changes to Binance’s operating framework over the next 12 to 18 months to fully adhere to these new regulations.
European lawmakers voted 529 in favor to 29 opposed, with 14 abstentions on Thursday to pass a new law regulating remittances.
There was also a vote to pass the MiCA law, which earned 517 votes in favor, 38 against, and 18 abstentions.
In a tweet, the European Commission’s Mairead McGuinness welcomed the move by European lawmakers, describing the change as a world first in the crypto space.
The Consequences of MiCa on Crypto
MiCA is designed to protect cryptocurrency transactions, and transfers over €1,000 from self-hosted wallets can be monitored and even blocked if suspected.
This rule does not apply to transactions between unaffiliated individuals with the Service Provider. In fact the rules or transfers between service providers acting on its behalf do not apply either.
The cryptocurrency regulatory market is considered a landmark in cryptocurrency. The reason is that as it established a coherent set of rules for cryptocurrency activities across the European Union.
This move is intended to bring transparency, stability, reduced risk, and security to the sector and pave the way for wider acceptance and integration into the mainstream financial system.